Easily Replace Alternative Choice in the Corporate Supplies

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How to Replace Alternative Choice in the Corporate Supplies

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this video will walk you through incremental analysis for replacing or retaining equipment in a decision to retain or replace equipment mancell compares the cost which are affected by the two alternatives generally the relevant items to be considered are the variable manufacturing cost and the cost of new equipment the book value of the machine old machine is a sunk cost which does not reflect the decision remember a sunk cost is a cost that cannot be changed by present or future decisions so just a quick reminder of what is Book value we talk about Book value thats simply the cost of the equipment less its accumulated appreciation so any book value means that we have not depreciated the piece of equipment totally yet and when if you just eliminate that piece of equipment and dont get any trade-in value that book value becomes a loss on the income statement so instead of depreciating it and we impact our income statement itll be a loss both have the same impact on the income stateme

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What is an example of Porter substitute products?

Butter and margarine, beer and wine, coffee and tea are all classic examples of substitute products. They are a threat to profitability because they put a cap on the prices that you are able to charge for your products and services.

What is substitute products alternative?

A substitute product is any alternative, replacement or endorsement of goods on the market. In other words, it is a product or good that acts as a replacement or alternative to a more popular item without noticeably affecting the composition or appearance, or the usefulness of the resulting product.

What is substitute competitive force?

Substitutes can create intense competition during normal economic times, and reduce potential profit increases during positive economic times. Identifying substitutes involves searching for other products or services that can perform the same function as the industrys product or service.

What is an example of alternatives in product?

This means if the price of one product increases, the demand for the other increases. For example, coffee can be said to be a substitute for tea, and solar energy is a substitute for electricity. If the price of coffee goes up, the demand for tea goes up, too, and vice versa.

What are examples of porters threat of substitutes?

Lets take a threat of substitutes example: You may be someone who enjoys coffee. When your doctor tells you to lay off the caffeine, you may consider switching to flowering tea or something similar. This creates the threat of substitutes products or services you can encounter.

What are substitutes in Porters five forces?

Porters threat of substitutes definition is the availability of a product that the consumer can purchase instead of the industrys product. A substitute product is a product from another industry that offers similar benefits to the consumer as the product produced by the firms within the industry.

What are substitute products examples?

20 examples of substitute goods and services Butter and margarine. Physical books and e-books. Sandals and flip-flops. Tuna and salmon. Steel-toe boots and composite-toe boots. Minivans and sport utility vehicles. Earrings and necklaces. Eyeglasses and contact lenses.

What are substitutes in business management?

What Is a Substitute Good or Service in Business? A substitute has the opposite effect of a complement; its a product or service that decreases a customers WTP for another companys product or service.

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